Amazon is restructuring its India operations with the announcement that it is shuttering its food delivery service, Amazon Food, in the region after Dec. 29.
In a statement sent to PYMNTS, the eCommerce giant said it will no longer be operating the food delivery business after trialing the service in the city of Bengaluru since May 2020.
According to a company spokesperson, the decision to close the service was made “as part of [Amazon’s] annual operating planning review process.”
“We don’t take these decisions lightly. We are discontinuing these programs in a phased manner to take care of current customers and partners,” the spokesperson said.
With this decision to dissolve its test food delivery business, Amazon will be missing out on a growing trend of food delivery consumers.
A September PYMNTS report, “The 2022 Restaurant Digital Divide: Food Aggregators Find Their Footing In Q2,” found that food delivery is an in-demand service in the U.S. In fact, 91% of meals are bought for delivery through food aggregating apps, such as DoorDash.
And with 47% of food aggregator app users utilizing digital tools during their last restaurant visit, there is room to grow if Amazon were to reconsider testing a food delivery service in the future.
Read more: Amazon to Lay Off 10,000 Employees
Amazon has been restructuring its corporate staff as well as reevaluating its global businesses, announcing Nov. 14 that the company was looking to lay off approximately 10,000 employees this month, the first and largest such move in the company’s history.
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